When it comes to choosing invoice software you will be spoilt for choice and this makes it hard to know which software is the right one for you. There are a lot of packages available, but you need to know what to look for in the right one.
What Are The Costs
As with any software package, it is important that you consider the costs of the invoice software. You will find that some packages are relatively cheap while others are very expensive. The more expensive packages are generally focused on larger businesses and will have too many options for your small business. You should look at what you would be able to afford and what each package has to offer for the price.
Your Tax Requirements
If you have to charge and collect sales tax, VAT or GST then you need to find an invoicing package that can handle this. The software will also need to meet the requirements of your local Tax Authority. The package you choose will need to provide invoices that display the wording ‘tax invoice’ and allow you to include your tax information on the invoice.
You will also need to consider what the tax reports on offer are. Some invoice packages will provide in-depth reports that can help you prepare your tax returns. However, there are other packages that only offer a report with an overview of the tax.
A lot of companies have other documents that they need other than their invoices. You should check if the software offers you quotes, credit notes and delivery orders. If your company requires the documents then your invoice software should be able to provide it. There is no point in having one system for invoices and another for credit notes or estimations.
The Data It Stores
You are going to be using invoicing software to make your invoicing easier and more effective, so you need to consider the data that it can store. The system will not make invoicing easier if you have to manually type in the description of goods each time you raise an invoice. The software should be able to hold product information and prices which make it easy to create an invoice.
The software should also offer you the option of linking payments to the invoices. There is no point in having all of your invoices in one place if you cannot tell which ones have been paid and which ones are still outstanding.